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U.S. Senior Loans


Oaktree initially formed the U.S. Senior Loan strategy in September 2007 to capitalize on the backlog of "hung" bridge loans held by investment banks. The strategy typically invests in broadly-syndicated, senior-secured loans or other senior, non-investment-grade debt. In most instances, the instruments we target constitute the most senior component in the borrower’s capital structure. In 2012, we continued to expand the strategy with a new product, Enhanced Income, which invests in senior loans through a lightly-levered CLO structure; and in 2014, we launched a traditional CLO product.


“We strive to build high quality, diverse portfolios through fundamental, bottom-up credit analysis and collaboration with our colleagues across Oaktree’s credit platform,” says portfolio manager Ronnie Kaplan. “We stress test each prospective investment and utilize our proprietary credit-scoring matrix to evaluate the risk of the borrower and the underlying loan. Consistent with Oaktree’s philosophy around the importance of risk control, we emphasize capital preservation and strong collateral coverage.”


The strategy’s focus is on U.S. dollar-denominated loans secured by first-priority liens in performing companies primarily within the U.S. and Canada, but also within Europe. Though it is less common, we may also invest in second lien loans, non-dollar-denominated loans, and secured or unsecured bonds, where we believe the value of the underlying business comfortably exceeds the value of our claim in a downside scenario.



Click here for information regarding risk disclosures associated with our strategies.
U.S. SENIOR LOAN TEAM
  • Ronnie Kaplan
    Portfolio Manager
See the complete team

ABOUT THE STRATEGY

 
Assets Under Management
$6,059 million
 
Location
Los Angeles
 
Strategy Inception
2007

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Senior Loan Platform
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